Board Thread:Pokémon Help/@comment-31292193-20170816072313/@comment-30804097-20170816185948

How much did you try the first time? It says that "After winning a battle, any Pokemon on the team that has this ability and is not already holding an item has a 10% chance of creating a held item for itself...", so you might have been just unlucky.

(I haven't tried it myself, but I'm pretty sure t_brad_m said on Discord that he disabled it in the update channel)